Boosted by gains in bank heavyweights, such as HDFC Bank, ICICI Bank and Axis Bank, Sensex and Nifty ended with gains on March 23.
Last year on the same day, the Indian market had made a low point of 7,500 as the outbreak of the coronavirus pandemic spooked investors.
While COVID-19 still persists as a grave risk, the ongoing vaccination drive and improvement in some economic indicators underpin the sentiment.
Sensex closed 280 points, or 0.56 percent, higher at 50,051.44 while Nifty settled at 14,814.75, up 78 points or 0.53 percent on March 23.
The market opened in the green and witnessed some volatility during the session. However, it managed to end higher as bank stocks supported the rally after the Supreme Court refused to grant interest waivers and extend the moratorium period.
"Domestic market ended the day on a strong footing supported by a rally in banking stocks amidst weak cues from global markets. Sentiments in the banking stocks were lifted post-Supreme Court’s order against granting interest waiver and extension of the moratorium period. While its decision to not charge compound interest added a minor concern in the banking space," Vinod Nair, Head of Research at Geojit Financial Services pointed out.
Apart from the banking stocks, cement stocks also hog the limelight. Cement stocks have been gaining after the Lok Sabha on March 19 cleared a bill to amend the Mines and Mineral (Development and Regulation) Act.
"Tuesday's trade witnessed cement stocks continue their upward momentum for the second consecutive day after the lower house approved the amendments to the MMDR Act. With the interest waiver case on loan moratorium decided today, investors value picked on PSU banks selectively. In the broader market, fertiliser stocks saw demand on receipt of subsidy payments," said S Ranganathan, Head of Research at LKP Securities.
Sectors and stocks
Among the sectors, Nifty Metal, FMCG and Media ended in the red while Nifty PSU Bank jumped 2.91 percent, Nifty Bank and Private Bank 1.73 percent each. Nifty Realty logged a gain of 1.05 percent.
Some 166 stocks, including ACC, UPL, Adani Enterprises, Adani Green Energy, Adani Transmission, Ambuja Cements, Can Fin Homes, Fortis Healthcare and Hester Biosciences, hit their 52-week highs on BSE.
As many as 315 stocks, including Bank of Maharashtra, Indian Overseas Bank, Reliance Infrastructure, Bank of India, Affle (India), Jaiprakash Associates, Adani Power, IFCI, Reliance Power and Central Bank of India, hit their upper circuits on BSE in intraday trade.
Stocks such as Berger Paints, AU Small Finance Bank and Max Financial Services saw a volume spike of more than 100 percent each.
Adani Enterprises, Shree Cement, Page Industries were among the stocks that witnessed long build-up. On the flip side, Hindalco, Coforge and Power Grid were among the stocks that witnessed a short build-up.
Nifty formed a bullish candle on the daily scale and negated the formation of lower highs of the last six trading sessions.
As per Chandan Taparia, Vice President and Derivatives Analyst at Motilal Oswal Financial Services, Nifty has to hold above 14,750 to witness an up move towards 14,900 and 15,000 while on the downside, immediate support exists at 14,700 then 14,600.
Shrikant Chouhan, Executive Vice President- Equity Technical Research at Kotak Securities pointed out that the 50-day moving average was a major hurdle for the market and now Nifty/Sensex could move closer to 14,950 to 15,000 (50,500/50,700) levels.
"Support is still at 14,570/49,250 levels. The formation of a double bottom in the Bank Nifty is working positively. The Bank Nifty is expected to move closer to 35,000. Maintain a stop loss of 33,850," Chouhan said.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.